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Infogrames Q1 Revenue Up, Profits Flat; Nasdaq Warns Company
Infogrames announced results for Q1 2003, which ended September 30, reporting a 39% increase in revenue to $109.4 million.
The company's net income came in at $731,000 (1 cent per share), about the same as last year's profit of $552,000. The company cited the following highlights during quarter:
The release of Unreal Tournament 2003 for the PC, which has been near the top of the PC Data charts.
Continued strength of Neverwinter Nights, which has been in the top 10 of the PC sales charts for three consecutive months
Strong sales of Terminator: Dawn of Fate (PS2, Xbox), Stuntman (PS2), Dora the Explorer: Backpack Adventure (PC), Dragon Ball Z: The Legacy of Goku (GBA), and Backyard Baseball (GBA).
Bruno Bonnell, Infogrames' Chairman and CEO, also addressed the fact the company's expenditures in research and development increased by 50% over last year, apparently caused by expenses at Shiny.
"We have repeatedly said that our first priority is to improve profitability," Bonnell said. "And we did that this quarter despite additional development costs from our newly acquired studio, Shiny Entertainment, associated with our upcoming game, Enter The Matrix. Year over year, our financial picture continues to improve and our investment in future titles is laying a strong foundation for long-term growth."
On a down note, Infogrames revealed that the company had received a delisting warning from Nasdaq on October 17th, stating that since the company's stock had not maintained a share price of $3.00 for 30 consecutive trading days, the company could face delisting. Infogrames' stock must close at $3.00 or higher for 10 consecutive trading days before January 15, 2003, to remain on the Nasdaq National Market. It closed at $2.40 today.